PARIS May 5 French stock market regulator AMF
said on Monday its sanctions committee has decided to fine U.S.
hedge fund Elliott Management and its UK arm Elliott Advisors 8
million euros ($11 million) each over insider trading relating
to French motorways operator APRR.
The AMF accused the UK arm of Elliott of using privileged
information to deal in APRR shares whilst negotiating to sell
its stake in the company to Eiffarie, a joint venture between
French construction company Eiffage and Macquarie
Atlas Roads which now owns all of APRR.
Elliott plans to appeal, a spokesman for the hedge fund
"The decision represents a misapplication of French law and
is not supported by the evidence," he said, adding that none of
the costs associated with the matter, including any potential
penalties, would be borne by the Elliott funds.
"Elliott's trading in APRR did not at any time make use of
any material non-public information and was for a legitimate
business purpose. Elliott purchased APRR stock on over 300
trading days between December 2005 and June 2010 as part of a
longstanding trading strategy."
French newspaper Les Echos had previously said that Elliott
Advisors UK would face a fine of 12.5 million euros, and Elliott
Management Corp 27.5 million should the AMF's adjudicators agree
to impose the penalties proposed by an internal committee.
(Reporting by Maya Nikolaeva; Editing by Greg Mahlich)